FULL SOLUTION MANUAL FOR
| | |
Financial And Managerial Accounting 4th Edition by Jerry J
| | | | | | | |
Weygandt, Paul D Kimmel, Jill E Mitchel
| | | | | | |
CHAPTER 1 |
Accounting in Action | |
ASSIGNMENT CLASSIFICATION TABLE
| |
Brief A
Learning |Objectives Questions | Exercises Do |It! Exercises Problems
1. Identify |the |activities |and 1, |2, |3, |4, |5 1 1, |2
|users |associated |with
|accounting.
2. |Explain |the |building |blocks |of 6, |7, |8, |9, |10 2 3, |4
|accounting: |ethics,
|principles,|and |assumptions.
3. State |the |accounting 11, |12, |13, |14. 1, |2, |3, |4, |5 3 5
|equation, |and |define 22
|its|components.
4. Analyze |the |effects |of 15, |16, |18 6, |7, |8, |9 4 6, |7, |8 1A, | 2A, |4A,
|business |transactions |on 5A
|the|accounting |equation.
5. Describe |the |four |financial 17, |19, |20, |21, 10, |11 5 8, |9, |10, |11, 2A, | 3A, |4A,
|statements |and |how |they 12, |13, |14, |15, 5A
| are|prepared. 16, |17, |18
© |2021 |John |Wiley |& |Sons, |Inc. |All |rights |reserved. |No |part |of |this |publication |may |be |reproduced, |stored |in |a |retrieval |system, |or
|transmitted,|in |any |form |or |by |any |means, |electronic, |mechanical, |photocopying, |recording |or |otherwise, |except | as | permitted |by |law. |Advice
obtain |permission |to |reuse |this |material |is |available |at
|http://www.wiley.com/go/permissions.
, | on |how |to
1-2 © |2021 |John |Wiley |& |Sons, |Inc. |All |rights |reserved. | Weygandt, |Financial |& |Managerial |Accounting |4e, |Solutions |Manual | | | (For | Instructor |Use
|Only)
, ANSWERS TO QUESTIONS | |
1. True. |Virtually |every |organization |and |person |in |our |society |uses |accounting |information.
|Businesses, |investors, |creditors, |government |agencies, |and |not-for-profit |organizations |must |use
|accounting |information | to |operate |effectively.
LO | 1, | BT: | K, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Reporting, | IMA: | Reporting
2. Accounting |is |the |process |of |identifying, |recording, |and | communicating | the |economic |events |of
|an |organization |to |interested |users |of |the |information. |The |first |activity |of |the |accounting |process
|is |to |identify |economic |events |that |are |relevant |to |a |particular |business. |Once |identified |and
|measured, |the |events |are |recorded |to |provide |a |history |of |the |financial |activities |of |the
|organization. |Recording |consists |of |keeping |a |chronological |diary |of |these |measured |events |in |an
|orderly |and |systematic |manner. |The |information |is |communicated |through |the |preparation |and
|distribution |of |accounting | reports, | the | most | common | of | which |are | called |financial
|statements. |A |vital |element |in |the |communication |process |is |the |accountant’s |ability |and
|responsibility |to |analyze |and | interpret |the | reported | information.
LO | 1, | BT: | K, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Reporting, | IMA: | Reporting
3. (a) |Internal |users |are |those |who |plan, |organize, |and |run |the |business |and |therefore |are |officers
|and | other |decision |makers.
(b) To |assist |management, |accounting |provides |internal |reports. |Examples |include |financial
|comparisons |of |operating |alternatives, |projections |of | income |from |new |sales |campaigns,
|and |forecasts |of | cash |needs |for |the |next |year.
LO | 1, | BT: | K, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Reporting, | IMA: | Reporting
4. (a) Investors |(owners) |use |accounting |information |to |make |decisions |to |buy, |hold, |or |sell |stock.
(b) Creditors |use |accounting |information |to |evaluate |the |risks |of |granting |credit |or |lending |money.
LO | 1, | BT: | K, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Reporting, | IMA: | Reporting
5. False. |Bookkeeping |usually |involves |only |the |recording |of |economic |events |and |therefore |is |just
|one |part |of |the |entire |accounting |process. |Accounting, |on |the |other |hand, |involves |the |entire
|process |of |identifying, |recording, |and | communicating |economic |events.
LO | 1, | BT: | C, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Reporting, | IMA: | Reporting
6. Harper |Travel |Agency |should |report |the |land |at |$85,000 |on |its |December |31, | 2022 | balance
|sheet. |This |is |true |not |only |at |the |time |the |land |is |purchased, |but |also |over |the |time |the |land |is
|held. |In |determining |which |measurement |principle |to |use |(historical |cost |or |fair |value) |companies
|weigh |the |factual |nature |of |cost |figures |versus |the |relevance |of |fair |value. |In |general, |companies
|use |historical |cost. |Only |in |situations |where |assets |are |actively |traded |do | companies |apply |the
|fair |value |principle.
LO | 2, | BT: | C, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Measurement, | Analysis | and | Interpretation
| IMA: |Reporting
7. The |monetary |unit |assumption |requires |that |only |transaction |data |capable |of |being |expressed |in
|terms |of |money |be |included |in |the |accounting |records. |This |assumption |enables |accounting |to
|quantify |(measure) |economic |events.
LO |2, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min., |AACSB: |None, |AICPA |FC: |Measurement, |Analysis |and |Interpretation | IMA:
|Reporting
obtain |permission |to |reuse |this |material |is |available |at
|http://www.wiley.com/go/permissions.
,
| | |
Financial And Managerial Accounting 4th Edition by Jerry J
| | | | | | | |
Weygandt, Paul D Kimmel, Jill E Mitchel
| | | | | | |
CHAPTER 1 |
Accounting in Action | |
ASSIGNMENT CLASSIFICATION TABLE
| |
Brief A
Learning |Objectives Questions | Exercises Do |It! Exercises Problems
1. Identify |the |activities |and 1, |2, |3, |4, |5 1 1, |2
|users |associated |with
|accounting.
2. |Explain |the |building |blocks |of 6, |7, |8, |9, |10 2 3, |4
|accounting: |ethics,
|principles,|and |assumptions.
3. State |the |accounting 11, |12, |13, |14. 1, |2, |3, |4, |5 3 5
|equation, |and |define 22
|its|components.
4. Analyze |the |effects |of 15, |16, |18 6, |7, |8, |9 4 6, |7, |8 1A, | 2A, |4A,
|business |transactions |on 5A
|the|accounting |equation.
5. Describe |the |four |financial 17, |19, |20, |21, 10, |11 5 8, |9, |10, |11, 2A, | 3A, |4A,
|statements |and |how |they 12, |13, |14, |15, 5A
| are|prepared. 16, |17, |18
© |2021 |John |Wiley |& |Sons, |Inc. |All |rights |reserved. |No |part |of |this |publication |may |be |reproduced, |stored |in |a |retrieval |system, |or
|transmitted,|in |any |form |or |by |any |means, |electronic, |mechanical, |photocopying, |recording |or |otherwise, |except | as | permitted |by |law. |Advice
obtain |permission |to |reuse |this |material |is |available |at
|http://www.wiley.com/go/permissions.
, | on |how |to
1-2 © |2021 |John |Wiley |& |Sons, |Inc. |All |rights |reserved. | Weygandt, |Financial |& |Managerial |Accounting |4e, |Solutions |Manual | | | (For | Instructor |Use
|Only)
, ANSWERS TO QUESTIONS | |
1. True. |Virtually |every |organization |and |person |in |our |society |uses |accounting |information.
|Businesses, |investors, |creditors, |government |agencies, |and |not-for-profit |organizations |must |use
|accounting |information | to |operate |effectively.
LO | 1, | BT: | K, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Reporting, | IMA: | Reporting
2. Accounting |is |the |process |of |identifying, |recording, |and | communicating | the |economic |events |of
|an |organization |to |interested |users |of |the |information. |The |first |activity |of |the |accounting |process
|is |to |identify |economic |events |that |are |relevant |to |a |particular |business. |Once |identified |and
|measured, |the |events |are |recorded |to |provide |a |history |of |the |financial |activities |of |the
|organization. |Recording |consists |of |keeping |a |chronological |diary |of |these |measured |events |in |an
|orderly |and |systematic |manner. |The |information |is |communicated |through |the |preparation |and
|distribution |of |accounting | reports, | the | most | common | of | which |are | called |financial
|statements. |A |vital |element |in |the |communication |process |is |the |accountant’s |ability |and
|responsibility |to |analyze |and | interpret |the | reported | information.
LO | 1, | BT: | K, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Reporting, | IMA: | Reporting
3. (a) |Internal |users |are |those |who |plan, |organize, |and |run |the |business |and |therefore |are |officers
|and | other |decision |makers.
(b) To |assist |management, |accounting |provides |internal |reports. |Examples |include |financial
|comparisons |of |operating |alternatives, |projections |of | income |from |new |sales |campaigns,
|and |forecasts |of | cash |needs |for |the |next |year.
LO | 1, | BT: | K, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Reporting, | IMA: | Reporting
4. (a) Investors |(owners) |use |accounting |information |to |make |decisions |to |buy, |hold, |or |sell |stock.
(b) Creditors |use |accounting |information |to |evaluate |the |risks |of |granting |credit |or |lending |money.
LO | 1, | BT: | K, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Reporting, | IMA: | Reporting
5. False. |Bookkeeping |usually |involves |only |the |recording |of |economic |events |and |therefore |is |just
|one |part |of |the |entire |accounting |process. |Accounting, |on |the |other |hand, |involves |the |entire
|process |of |identifying, |recording, |and | communicating |economic |events.
LO | 1, | BT: | C, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Reporting, | IMA: | Reporting
6. Harper |Travel |Agency |should |report |the |land |at |$85,000 |on |its |December |31, | 2022 | balance
|sheet. |This |is |true |not |only |at |the |time |the |land |is |purchased, |but |also |over |the |time |the |land |is
|held. |In |determining |which |measurement |principle |to |use |(historical |cost |or |fair |value) |companies
|weigh |the |factual |nature |of |cost |figures |versus |the |relevance |of |fair |value. |In |general, |companies
|use |historical |cost. |Only |in |situations |where |assets |are |actively |traded |do | companies |apply |the
|fair |value |principle.
LO | 2, | BT: | C, | Difficulty: | Easy, | TOT: | 2 | min., | AACSB: | None, | AICPA | FC: | Measurement, | Analysis | and | Interpretation
| IMA: |Reporting
7. The |monetary |unit |assumption |requires |that |only |transaction |data |capable |of |being |expressed |in
|terms |of |money |be |included |in |the |accounting |records. |This |assumption |enables |accounting |to
|quantify |(measure) |economic |events.
LO |2, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min., |AACSB: |None, |AICPA |FC: |Measurement, |Analysis |and |Interpretation | IMA:
|Reporting
obtain |permission |to |reuse |this |material |is |available |at
|http://www.wiley.com/go/permissions.
,
